The Lake Resources NL (ASX: LKE) share price is currently down more than 2% in Monday morning trading at 99 cents.
As the market deals with a number of macroeconomic headwinds, Lake shares have largely traded sideways for the past three months.
After a bumpy ride since trading resumed in January, the Lake share price is relatively flat this year to date, as seen below.
Notice the close alignment with movement in the benchmark S&P/ASX 200 Index (ASX: XJO), particularly since March.
Image source: Getty Images
What's in store for Lake?
Coming into the second quarter of 2023, the outlook for the ASX lithium share hinges on a number of factors.
Perhaps the most important is the price of lithium and its outlook into the future.
After retreating in the April-May period, the battery metal has reclaimed its growth pattern with lithium carbonate recently nudging past all-time highs in September. It has held this level since.
Lake also announced it had secured a strategic investment and offtake agreement with WMC Energy at its Kachi Project in Argentina.
The deal sees WMC agree to take 50% of the battery-grade lithium produced at the project, up to 250,000 metric tonnes per annum over a 10-year term.
What do the experts say?
Meanwhile, brokers are bullish on Lake Resources shares. According to Refinitiv Eikon data, 100% of analysts covering the share rate it a buy right now.
The consensus share price target is $2.42. That implies significant upside potential of around 144% at the time of writing should it be accurate.
Noteworthy is that Lake Resources had $175.4 million in cash and equivalents on its balance sheet in FY22, up from $25 million the year prior.
Shareholder equity also increased to $218 million, however, the company is yet to commence full operations with turnover or operating profit.
It is also reinvesting heavily back into its business with its available cash. Cash flow after capital expenditures (CapEx) was a negative $32 million, up from the $7 million loss in FY21.
Lake Resources share price snapshot
Certainly, the outlook for Lake Resources looks to be centred around movements on its Kachi Project, the price trajectory of lithium, and the market's reaction to ongoing systematic risks.
Despite its recent stagnation, the company's share price has gained 82% in the past 12 months.
